Transaction Would Double Investar’s Northshore and New
Orleans-Area Community Banking Presence

Investar
Bank today announced that it has signed a definitive agreement to
acquire the $107-million asset First Community Bank headquartered in
Hammond, La., a transaction that would double Investar’s New
Orleans-area franchise and further expand its franchise, which was
founded in and increasingly serves the larger southeast Louisiana market.

It is anticipated that no jobs will be eliminated as part of the
transaction, which is expected to close in the second quarter of 2013.
The two privately held companies chose not to disclose terms of the
agreement.

Investar opened its first New Orleans-area presence in late August with
a temporary location in Metairie, then its permanent office at 500
Veterans Blvd. on Dec. 18 and its second office on Dec. 20 at 2929
Highway 190 in Mandeville. Following completion of the First Community
transaction, Investar will have four branches in the state’s largest
market, where it had no presence at all at the start of the 2012 holiday
season. In total, Investar will have 9 branches with the addition of
First Community: Hammond (1), Mandeville (2), Denham Springs (1), Baton
Rouge (2), Port Allen (1), Prairieville (1) and Metairie (1). Pending
regulatory approval, a 10th location is expected to open this year, in
Lafayette.

The First Community transaction requires approval from the Federal
Deposit Insurance Corporation (FDIC), the Board of Governors of the
Federal Reserve System, the Louisiana Office of Financial Institutions
and shareholders of First Community Holding Company, the parent of First
Community Bank. Until operational conversion, which would not take place
until the second quarter of 2013, following all required approvals and
completion of the transaction, First Community customers will see no
changes in their banking services and should continue to use their
checks, make loan payments, conduct online banking and take advantage of
other First Community services as before.

“The northshore of Lake Pontchartrain and all of New Orleans are
important regions for Investar Bank,” said John D'Angelo, president and
CEO of Investar. “We’re excited to join with the outstanding team at
First Community and look forward to growing together as Investar. With
our exceptionally strong capital, which is always reassuring to
customers but is even more so during today’s economic challenges, we
have the capacity to help small businesses grow and individuals and
families prosper.”

First Community has two locations, one each in Hammond and Mandeville.
Cordell H. White, who is CEO of First Community, will serve as Investar
Bank regional president for Livingston and Tangipahoa parishes after
closing of the transaction. He has worked at First Community for 10
years and has a total of almost 39 years in banking, including 14 on the
northshore and in Tangipahoa Parish.

White explained why the combination with Investar is in the best
interest of customers, employees and the communities that the
12-year-old bank serves.

“Through Investar, our customers will have far greater flexibility and
convenience when they conduct their banking,” he said, “and serving
customers will be an expanded team of some of the best bankers I’ve ever
met. They and Investar Bank can help make our communities even stronger
by investing in and living where our customers are.”

Leading the bank’s northshore market, which includes adjoining St.
Tammany Parish and the Mandeville location of First Community as well as
the rest of the New Orleans area, are career bankers Stephen E. Wessel
as New Orleans regional president and Kevin J. Dobson as New Orleans
chief lending officer.